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Accounting and Bookkeeping Services in Cambridge, Massachusetts
From Harvard Square startups to Kendall Square tech companies, Cambridge businesses trust 1-800Accountant's expert CPAs to handle their bookkeeping and tax needs with precision and care.
Our Accounting Services for Cambridge Small Businesses
Business Tax Preparation: Have your taxes prepared and filed by a CPA with expertise in your industry so you're always confident in your business tax situation. Our CPAs, with more than 17 years of experience on average, can save you thousands annually when you delegate complex Cambridge tax preparation to them!
Bookkeeping: Solidify your financial base and manage cash flow with precise, error-free bookkeeping done for you that saves time and provides crucial insights that empower you to make important data-backed business decisions. This meticulous process delivers essential tools for interpreting data with easy-to-understand reporting, enabling your accountant to develop vital financial modeling.
Tax Advisory: Business tax considerations don't end in April. Through our affordable tax advisory service, you can receive the guidance you need when you need it year-round from a dedicated small business tax advisor. Strategic planning helps minimize your business tax liability in Massachusetts throughout the year while ensuring compliance.
Payroll: Save hours each pay period with comprehensive payroll services handled for you, with regular tax submissions to the city of Cambridge, ensuring accuracy and freeing you to focus on other vital aspects of your business.
Business Formation: Enjoy the advantages of officially establishing your business in Massachusetts with our complimentary incorporation services. Simply cover any Cambridge fees, and we will manage the rest. This puts you on a path to hiring employees and creating a business bank account as you experience the benefits of an optimized business structure and maximum tax savings.
Discussing your business taxes with 1-800Accountant is quick and easy:
- Set up a time for us to give you a call.
- Tell us what’s going on with your business.
- Get matched with an accountant who knows your industry & local regulations.
| Level | Rate |
|---|---|
| State Tax Rate | 6.25% |
| County Tax Rate | None |
| Municipal Tax Rate | None |
| Combined Sales Tax Rate | 6.25% |
| City-Specific Taxes |
|---|
| Massachusetts corporations, whether they are based in the state or out of state, pay the Corporate Excise Tax (8.0%) on net income plus $2.60 for each $1,000 of taxable tangible property or net worth, with a minimum excise of $456. Calendar-year filers must file Form 355 and pay any balance due by April 15. Estimated payments of 25% each are due on April 15, June 15, September 15, and December 15. |
| Licenses and Permits |
|---|
| Cambridge businesses operating under a name different from the owner's legal name must file a Business Certificate (DBA) with the City Clerk's Office. |
| The following businesses require specific licenses from the Cambridge License Commission: food service establishments and restaurants, hotels and lodging houses, entertainment venues (live music, performances), tobacco and vaping product retailers. |
| Massachusetts state law requires most businesses to register for Sales and Use Tax if selling taxable goods or services. |
| Professional service providers such as contractors, salon owners, and other regulated professions must obtain appropriate state-level professional licenses. |
| Grants and Funding in Cambridge | Grants and Funding Information |
|---|---|
| Small Business Enhancement Program | Offers reimbursement grants to eligible retail, food, home-based, and creative for-profit businesses in Cambridge. Designed for Cambridge-based businesses including home-based enterprises, funds can be used for business improvements and enhancements. |
| Small Business E-Commerce Grant Supports | Cambridge small businesses in developing e-commerce capabilities. Applications typically require an eligibility form. The program is focused on helping businesses increase online sales and digital presence. |
| Biz-M-Power Crowdfunding Program | A Massachusetts state program that matches funds raised via local crowdfunding campaigns for small businesses. Cambridge businesses can leverage this program to double the impact of their crowdfunding efforts. |
| Small Business Operations Grant Program | Previously offered operational cost reimbursement grants (rent, payroll, inventory, etc.) to local, non-franchise businesses with 50 or fewer employees. Grant amounts ranged up to $15,000 for brick-and-mortar and $7,500 for home-based businesses. While the most recent round closed, similar programs may reopen in the future. |
What to Look for in Cambridge, Massachusetts Accounting and Bookkeeping Services
When choosing an accountant or bookkeeper for your Cambridge small business, you should consider the following factors:
Certifications and Massachusetts Tax Expertise: Look for professionals with appropriate credentials like CPA, EA, or certified bookkeeper status. They should demonstrate thorough knowledge of Massachusetts tax codes, including the state's unique filing requirements and compliance standards for businesses operating in Cambridge's innovation economy.
Industry Specialization in Tech and Life Sciences: Seek accountants with specific experience serving Cambridge's dominant industries. A financial professional who understands biotech startups, research institutions, or technology firms will provide more valuable insights than a generalist. They should comprehend the unique cash flow patterns, funding mechanisms, and tax implications common in Cambridge's innovation ecosystem.
Experience with Academic-Commercial Partnerships: Cambridge's economy thrives on collaborations between universities and private enterprises. Your accountant should understand the financial complexities of research grants, technology transfers, and public-private partnerships that frequently occur between MIT/Harvard and local businesses.
Familiarity with Startup Financing: Given Cambridge's vibrant startup scene, particularly in Kendall Square, your financial professional should understand venture capital, angel investing, and the specific accounting challenges of early-stage companies. They should help navigate R&D tax credits and the financial reporting requirements that come with different funding rounds.
Understanding of Local Business Incentives: Cambridge offers specific programs to support business development, particularly for companies focused on sustainability and innovation. A knowledgeable accountant will help you access tax incentives from both the city and state level, including those specifically designed for clean tech and life sciences companies operating in the area.
Talk to a business tax expert today for all your tax needs in Cambridge.
Additional Massachusetts Accounting Resources:
Massachusetts Small Business Tax Guide: Essential Tips
Virtual Bookkeeping: How To Find the Best Online Bookkeeper
CPA vs. Tax Preparer: Which Is Best for Your Business?
*Based on a $12.2k average 2022 tax refund per client, which is 4x the cost of a full-service package. Source: first-party data.
*Includes average business tax preparation, form completion and submission, record keeping, and other misc admin time. Source.
*Historical first-party data.